New York Congressman Chris Collins Arrested on Insider-Trading Charges

New York Congressman Chris Collins Arrested on Insider-Trading Charges

New York Congressman Chris Collins Arrested on Insider-Trading Charges

Rep. Chris Collins, R-New York, was arrested Wednesday and charged with insider trading relating to an Australian biotechnology company, according to federal prosecutors.

Collins was a member of Innate's board of directors and held almost 17 percent of the stock.

This led to three trades, it is alleged, that helped the defendants avoid $768,000 USA in losses.

Collins' trades in Innate Immunotherapeutics had already been the subject of a House ethics probe.

Chris Collins' lawyers responded swiftly, insisting he will be "completely vindicated". The stock price rose as media reported on the men's holdings in the Australian company.

"Congressman Collins will have more to say on this issue later today". According to an indictment unsealed Wednesday, the elder Collins learned that a drug from the company failed an FDA trial while he was at a White House picnic in June of 2017.

The defendants are accused of multiple counts of securities fraud, as well as one count of wire fraud, one count of conspiracy to commit wire fraud and one count each of making false statements.

Collins, who was the first sitting member of Congress to endorse Donald Trump's presidential bid, surrendered Wednesday morning at his attorney's office in Manhattan, according to the Federal Bureau of Investigation.

"We will answer the charges filed against Congressman Collins in Court and will mount a vigorous defense to clear his good name", Collins's attorneys said in a statement posted on his website.

Collins, one of President Donald Trump's strongest congressional allies, remains under investigation by the committee, which has the power to sanction lawmakers.

Successful completion of the trial was necessary for commercialization of the production in the USA, which was meant to treat secondary progressive multiple sclerosis, a stage of the disease that indicates the patient's condition is worsening despite treatment.

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